CA Inc, False Claims, Washington D.C. 2024

CA Inc, a major information technology management software and services company, has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract.

The settlement resolves allegations related to a GSA contract awarded to CA for software licenses and maintenance services. Under Multiple Award Schedule (MAS) contracts like this one, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies.

At the time of CA’s contract, contractors were required to fully and accurately disclose to GSA how they conducted business in the commercial marketplace so that GSA could use that information to negotiate a fair price for government agencies using the GSA contract to purchase CA products and services.

The contract also contained a price reduction clause that set forth when the contractor had to reduce the prices it charged to the government if its prices to commercial customers improved. However, the settlement resolves claims that CA did not fully and accurately disclose its discounting practices to GSA contracting officers.

According to the settlement, CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated in 2002 and was extended in 2007 and 2009.

A former employee of CA Software Israel LTD, Dani Shemesh, filed a whistleblower lawsuit under the False Claims Act, which led to the investigation and eventual settlement. Shemesh will receive $10.195 million as part of the settlement.

“Today’s settlement demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds,” said Acting Assistant Attorney General Chad A. Readler.

“This case illustrates that we will vigorously pursue federal contractors who fail to negotiate and perform their obligations with transparency and fairness,” said U.S. Attorney Channing D. Phillips for the District of Columbia.

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